Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rallied another 1.6% to close above $1,966 on safe-haven inflows after Russia attacked a nuclear powerplant in Ukraine, fueling new anxieties about Western Europe's deadliest military action since World War II. The metal gained 4.1% for the week, its best since July 2020.

Russian shelling set fire to Ukraine's largest nuclear power facility, prompting worries about Chernobyl-like radiation until the blaze was extinguished. The attacked raised concerns that Ukrainian infrastructure like water, energy, and telecom are targets as the Russian army escalates its deadly assault.

Meanwhile, The US economy added a whopping 678,000 jobs in February, far more than forecast, and the unemployment rate fell back to 3.8%. It was the biggest monthly increase in hiring in seven months.

Risk appetite continued to unwind despite the upbeat employment news, with the Dow and S&P 500 dropping another 0.5% and 0.8%, respectively. The Nasdaq fell 1.7% and the Global Dow lost 2%.

Benchmark 10-year Treasury receded further, dropping near 1.7% as investors sought shelter in government bonds. Falling yields support gold by reducing the opportunity cost for holding it instead of bonds as a safe-haven asset.

US Benchmark WTI crude surged another 6.8% to $115 per barrel, posting a weekly rise of 20% on war-related supply fears. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The dollar jumped 0.7%, capping gold's rise, as the euro tumbled to a two-year low on expectations that the Ukraine crisis will undermine economic growth. A stronger dollar weighs on gold and other commodities by making them pricier in other currencies.

The other precious metals were higher for the day and week. Silver added 2.3% for the weekly rise of 7.5%, its biggest since December 2020. Platinum jumped 3.3% today and 6.4% this week. Palladium rocketed another 9.2% higher for a weekly gain of 26.1% on supply concerns.

At the Come close: April gold gained $30.70 to $1,966.60; May silver climbed 58 cents to $25.79; April platinum picked up $36 to $1,116.80; and June palladium surged $251.10 to $2,981.90 an ounce.